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The double entry to record the proceeds on disposal of assets in debit

The double entry to record the proceeds on disposal of assets in debit
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Bank account; credit asset disposal account
  • B Asset disposal account; credit bank account
  • C Provision for depreciation account; credit asset disposal account
  • D Asset disposal account; credit provision for depreciation account
Correct Answer: Option C
Explanation:
Debit provision for Depreciation account (to remove the equipment's up-to-date accumulated depreciation), Credit the account Equipment (asset disposal account) to remove the equipment's cost.

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